Establishment - Putting the idea into action

Once the business idea has been clearly defined and the means of implementation have been decided, the next stage is to launch the business.

Establishment - Putting the idea into action

The exact steps to be taken ultimately depend on the chosen type of business and the legal form, as each of these are accompanied by various legalities and obligations that businesses in Germany are required to observe. There are major differences with regard to liability, rights and obligations of the founders, the company size as well as forms of participation by third parties. Before setting up a business, it is recommended that prospective entrepreneurs fully acquaint themselves with the different legal forms.

The types of taxes that have to be paid by a company also vary according to the legal form. In addition to tax liability, there are many other legal provisions to be observed, e.g. with regard to the company name or the design of any partnership agreements.

Depending on the chosen legal form, the company may be obliged to register with a number of German authorities.